Onsemi is in talks to acquire Ferric, a New York based maker of integrated voltage regulators for AI chips, for close to $1 billion, The Information reported on October 28, citing people familiar with the matter. The structure is unclear and could include payments tied to Ferric meeting performance targets; a deal could come together in the coming days, though terms may change or the talks could collapse. Ferric declined to comment and an Onsemi spokesperson did not respond to a request for comment. Reuters, carrying the report, stated it has not verified the story.
Ferric, founded in 2010, makes integrated voltage regulators that combine the controller, inductors, transistors and capacitors in a single component, delivering current to processors over shorter paths to cut losses and improve response. The company last raised a $32.1 million Series C in December 2024, backed by New Science Ventures and federal grants, and generates little revenue, which would make a price near $1 billion a steep one.
The strategic logic is the power bottleneck in AI computing. Analog Devices agreed in May to buy Empower Semiconductor for $1.5 billion in cash, saying power density rather than total watts has become the limiting factor as AI computing expands, and Infineon completed its purchase of C2i Semiconductors in October. Onsemi, with a market value of about $30 billion and $6 billion of revenue last year, designs power semiconductors for cars, factories and increasingly AI data centers, and this month agreed to buy Synaptics for $5.7 billion in cash. Onsemi reports quarterly earnings on Monday.